Refers to a type of bilateral contract arrangement in which an energy producer or seller receives a fixed price for energy plus an adjustment value to cover any differences between the agreed-upon fixed price and the actual market price of the energy at the time it is delivered. Occasionally referred to simply as financial contracts. CfD energy prices are usually set low to insure that the energy is bought, but both buyer and seller run risks of high or low spot prices at the time the energy is delivered.

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